tv Bloomberg Daybreak Europe Bloomberg February 12, 2020 1:00am-2:00am EST
manus: this is "bloomberg daybreak europe." nejra: these are today's top stories. ♪ we shall overcome. president xi vows china will nejra: this is "bloomberg meet its economic goals despite the coronavirus threat. daybreak: europe." jerome powell warns the outbreak manus: i am manus cranny in poses a risk to the u.s. and dubai. is helpingf gucci world economies. bernie sanders wins the new hampshire primary, pushing pete the numbers. buttigieg into second place. fourth quarter comparable sales close at 10.5%. softbank reporting the estimate was for a .6%. earnings. gucci -- 8.6%. gucci definitely a bulwark of the kering stable.
the dividend is raised to 11.5%. two key elements when the market opens later on. manus: first, breaking news. they see gucci sales both slow down less than expected at the a blowout at abn amro and the end of the year. the cfo talks about hong kong. net income is a significant hong kong, the cfo says fourth miss. quarter sales fell by 50%. the walkways from this, blowout the cost to income rate to 65.9 at gucci. hong kong is falling like a stone in terms of sales. percent from 59.4%. we will see how the market plays out on that. from gucci handbags to banks, that is a quarter on quarter blowout. capital, and dividends. the costs associated with ro's fourth quarter running this business are really beginning to come to bear. income missed estimates. there is plenty of capital in to discuss the numbers, we have the bank. but below estimates. the cfo, clifford abrahams. ag hopes and aspirations for i go straight to your dividends, blowout payout in terms of the the dividends. dividend, but the dividend has been slashed. this is the headline that will what i want to understand is a move abn amro. cut in the dividend. from 0.80. do you have to lay aside the ambition to raise the nominal
dividend? do you need to drop that return on equity was 10%. commitment now as one of those moments?-- litmus dividend per share for the full year was on .28 and 1.34. clifford: we do not have such a we will have a conversation later on. commitment to raise the nominal dividend and dividends in europa the numbers, the ramifications share -- euros per share. for the business. that is at 6:30 a.m. our commitment is to a payout policy. each year, we pay out a minimum of 50% of our profit. you have softbank. what a flyer the stock is on. this year, we are proposing to rise ase saw shares pay out 62% of profit, in line with last year. much as 13% this morning after the u.s. approved its profitmaintaining our long-delayed sale of sprint t-mobile. softbank returns to profit in payout ratio. we think a payout ratio is the the fourth quarter, posting operating income of ¥2.59 best way to manage dividends at a bank because it ensures our billion. the nine million vision fund flexibility and means we remain robust from a capital it has also booked a perspective through different economic conditions. nejra: clifford, good to speak to you this morning. ¥331.9 billion gain from on top of that, the cost to income ratio has risen. alibaba's listing. there is recognition of a
what can you tell the market dilution gain. about how you will manage that? rat right now for banks across it is returning to profit in the fourth quarter. europe. to walk into the news incomes are very much under pressure, reflecting low rates, conference with a huge rally after the u.s. approved the sale us included. of sprint to t-mobile u.s. is a: some people say it we have decided earlier this year to pass on negative rates to our larger savers. flip-flop bank. i'm not talking about mark that will safeguard the top carney, i'm talking about the line. kiwi. we are also working very hard to they think the coronavirus will be disciplined on our costs. last six weeks in terms of impact. the message from the rbnz was no while we are putting more and more resources into regulatory rate cut this year. and detecting financial crime matters, we are also making good and as a stinging rebuke to the backdrop of central banks, progress on our cost-saving programs. monetary policy would only be a we have given an update today bit player. regarding the future potential of these. we have come off the highest. clifford, you talk about you have seen a significant rise. having to charge now to clients. the biggest one-day rise since the second of december. give me a sense, do you expect take your mind back to last there to be a flight of deposits february when they said no more rate cuts. they flip-flopped. out? openouth korean won takes can you put some numbers around that charging process, the consequences that you have modeled for in terms of
from the assessment of where we are with the coronavirus. defending the top line and potentially the risk of deposits? clifford: yeah. reprieve little bit of mro we have an a . russia is studying the proposal of 600,000 barrels a day. can crude find a $50 floor? large,, private bank. there was a trade in the options for those clients with more than market for wti, brent to pass 2.5 million with the bank, we are passing on the cost of 50 basis points per year. down at $10 per barrel for 2021. we pay 50 basis points to the ecb and we are passing that on somebody out there having a big old punt. to those savers. nejra: one more red headline. what we have seen across the market here in the netherlands the third-quarter vision fund is other banks also passing on loss was -- but it has returned negative rates for very large savers. so we feel confident that we can to profit in the third quarter. retain those clients, important equity exceptionalism is how ubs clients for the bank. has called this in terms of orities reaching records, at we want to maintain a relationship but we need to be fair to all of our clients. we do not expect a big outflow near records. the s&p 500 at another record of deposits given that is what yesterday. we are not seeing that today in other banks are adopting, terms of the market. that exceptionalism reflects the similar policies. 50 basis points on balance is fact bond yields have dropped this year. here we have stocks gaining, 10 about 30 billion, which is how
much those large savers have with us, is around 150 million year yields moving higher. euros per annum. bernie sanders has been declared the winner of the democratic new that is a meaningful amount in hampshire primary. terms of safeguarding the top the vermont senator has fended line to the bank during this off strong challenges from amy difficult period. nejra: during this difficult klobuchar and pete buttigieg. period, clifford, i understand elizabeth warren in fourth. pressure is building on joe biden, whose fifth-place finish you are trying to manage the three things we talked about. if push comes to shove, what makes the south carolina primary will you prioritize in protecting? more critical. joining us from new york, great is it the dividend ratio, to have you with us. cost-cutting, or the impact on how have candidates reacted to depositors? so, you know, we play the results? >> from bernie sanders i can only describe it as a victory speech. and it was a victory for sanders. an important role in society. what is critical for us is that he had nearly 26% of the vote. his margin of victory is lower we safeguard the capital position of the bank. that is important to all of our than it was in 2016 when he stakeholders, our clients during handily beat hillary clinton in all economic circumstances. the new hampshire primary by 22 points. here, we are really very strong, now his margin is lower. we have a very robust balance former mayor pete buttigieg getting 24.4% of the vote. sheet, 18% ratio. the associated press projecting we are feeling comfortable from they will get the same number of delegates for the state. a capital point of view. beyond that, our primary key
that puts buttigieg's total performance indicator is return delegate count higher. on equity. amro, important for abn a big surprise was amy klobuchar's strong showing. for banks around europe to have strong return on equity because nejra: thank you so much. that is what we used to pay dividends, grow our business, now let's get back to our top story. and maintain our capital position. the coronavirus death toll. in 2019, we post it return on equity of 10%, which is within the latest data signals the our target range of 10%-13%. outbreak may be using. the number of new cases was the is it at the low end -- it is at lowest this month. are really, but we cases on found 39 more quite pleased when you look across europe at other banks. a quarantined luxury cruise ship. 10% is looking quite good given the circumstances. manus: clifford, regulation manus: singapore has announced a compliance will get us all in it?end, won't budget package to mitigate the economic fallout. impact andr knock on be quite severe. , supply chains the dutch finance minister warning that bankers are in for are already being disrupted. a rude awakening. can you give us an update in this has an impact on the terms of investigations and
overall global economy. regulations in terms of the singapore will surely be financial cost to abn? impacted. preparing for a strong can you give us some guidance on that? clifford: yes, that settlement package in the coming budget. manus: singapore's minister for in the u.s. was a relatively national development speaking to small amount in dollars. bloomberg earlier. in the u.s., jerome powell said we are very focused on the outbreak poses a risk to the regulatory matters. it is important we run the bank american and world economies. in a safe toy. that is balance -- safe way. >> the uncertainties around trade have diminished, but risks to the outlook remain. we are very clear here that we we are closely monitoring the need to comply and do that well. emergence of the coronavirus, in terms of finances and which could lead to disruptions resources, we have said today in china that spill over to the that we spent around 400 million rest of the global economy. euros on detecting financial that was the fed chairman crime activity in 2019. jerome powell testifying before we expect that overall amount in the house financial services committee. terms of euros to be roughly our guest is a global economist. stable in 2020 and come down modestly after that. jinping'sssess xi we have over 2000 of our staff promising 6%. the new zealand central bank focused on detecting financial saying monetary policy will be a crime activities. we have around 20,000 staff here big factor in terms of the markets, saying verbatim across the group. monetary policy could only be a you can see a major commitment
bit singapore going for to ensuring the safety of the bank and for us to ensure that we are fully compliant and do stimulus. the narrative is not rate cuts, what we need to do to ensure the but stimulus. is that my starting point as we system is safe. we will continue to do that. draw lines in the sand with at the same time, as i coronavirus this morning? mentioned, we are making really good progress on cost measures monetary policy is reaching and the two will offset each other. its limits globally. nejra: thank you so much for joining us. clifford abrahams, cfo of abn amro. the most direct way to stimulate the economy in this uncertain fourth quarter underlying eps comes in at 52 euro cents, a environment is probably fiscal beat on the estimate. policy directly helping the companies. now, for the story you need to china directly cut taxes these know. 's new ceo will give companies are paying, helping this company go through this his vision for the company. crisis. that is more effective than monetary policy. investors will want to know how ubs has talked about much appetite he has to take on the existential crisis facing the oil industry. manus: indeed. equity exceptionalism. we see asian stock higher today. last week, climate protesters forced the company to shut its
down0 year treasury yields london headquarters. the 49-year-old irish man 30 basis points in 2020. the point is rates in commodity promised he would address the concerns. markets sending a different bp has already taken modest signal to equities. how fragile is the equity steps to increase -- two combat exceptionalism we are seeing climate change -- to combat right now in investors' climate change. mindsets? equities are not pricing in activist shareholders are scrutinizing his every word. the worst case scenario. top of their agenda will be how does he plan to deal with the obviously we are not hoping for so-called scope three missions, that. but i do think equities are which tackles greenhouse gases priced for perfection mainly from the fuel that bp sells. because of the liquidity from the financial system. what do you need to know for the it could be vulnerable, but i day ahead? we will be speaking to the man think if this coronavirus is himself. it is an exclusive conversation at 5:30 p.m. going to be contained as markets ,xpect, and it is justified he has taken over the mantle from bob dudley. overall consensus is that it is has a host of esg going to be contained, but if not, equities could be vulnerable. issues to deal with. we see the pboc flushing the whole world is sort of in esg frenzy mode. the system with liquidity. does it play out economically i asked my guest yesterday. for you? the fed is pumping liquidity into the system. what is the risk this year and
what is the risk from this amount of liquidity? over the next five years as you reallymi of liquidity look at it economically? >> economically, one important thing i can think of is people flooding into markets. risk could be people -- condemning some retailers like h&m have .eing too optimistic been issuing warnings that if this esg focus on scrutinizing there is to be some correction at some point. -- as inew the markets faster session, that will fit, the hit the pro said, i think equities have priced perfection now. revenue, i think people are if there are downside risks in trying to be minimalist the economy, if we see china nowadays. slide more than expected, that will probably hit a number of retailers. equities could be vulnerable. it would definitely hit consumption as people try to liquidity generally boosts stock spend less and be more conservative to save the environment. there will be hits to energy valuation to a point where it companies like bp, because i could be detached from reality. nejra: now let us get to the think a lot of asset managers are scrutinizing these oil first word news. they are veryuse partcarney's backing a key carbon heavy. of boris johnson's economic nejra: great to have you with
land. the outgoing governor is us. welcoming a new focus on that is it for "bloomberg ."ybreak: europe productivity. he says if the rest of the country could match levels in greater london, the economy the european open is up next and looks like we could open higher would be a third larger, but he again. we saw a records in the u.s. warns it may take years to make a difference. yesterday but it is not necessarily equity exceptionalism. risk on across assets. modi'sinister narendra this is bloomberg. ♪ when it comes to using data, party has conceded defeat for control of delhi after his citizenship law sparked protests. mountedu-nationalist's an aggressive campaign, but have not controlled the capital for -- a longtors who backed prison sentence for roger stone have quit the case hours after president trump tweeted criticism of the post punishment. roger stone is a longtime ally of the president. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. coming up, congress give the fed
everyone is different. which is why xfinity mobile created a different kind of wireless network. one that saves you money by letting you design your own data - giving you more choice and control compared to other top wireless carriers. now you can choose unlimited, shared data, or mix lines of each and switch any line, anytime. no one else lets you do that. design your own data with xfinity mobile. it's wireless reimagined. simple. easy. awesome.
manus: this is "bloomberg >> good morning. daybreak: europe." google's antitrust fight welcome to "bloomberg markets: european open." we are live from our european goes before the eu general court headquarters in the city of london. for a three-day hearing. today, the markets say expect support. the internet giant is battling finds that cost the company futures and stocks gain as nearly $9 billion. investors weigh policy we are expecting eurozone intervention over the spreading industrial production figures. coronavirus. a big day for earnings releases. data published so far shows contractions in output across major economies. the cash trade is just under an hour away. ♪ jerome powell delivering his semiannual report on the state of the u.s. economy to congress. visionw ceo delivers his anna: spillover. of the company at investor day.
we are going to be talking about the coronavirus again with the chief executive at -- pharmaceutical. nejra: congress gave the federal reserve two mandates. jerome powell told lawmakers the central bank will never declare victory on the first one. he said, we aree de progress. on the impact of the virus on the u.s. economy, powell said the question for the fed is weather effects will be persistent and material. on the persistent and material, the market pricing a rate cut from the fed while powell seeming to suggest the fed is on hold, is that the market expecting the coronavirus will have a persistent and material impact on the u.s. economy or just that probable will changes narrative at some point?
>> i do markets expect the lastingrus to have impacts on the economy. it's impact on the u.s. industrial economy is very little. actually quite beneficial to consumers. thatnk the narrative is the fed should keep interest rates on hold. markets are expecting a more dovish central bank, but i think with this current economic environment, the strong labor market data we have seen last the, and also generally u.s. economy is doing quite well. i don't think they really need to ease policy much more this year. seeing there still proverbial inflation, have we? bondsant to belong specifically because u.s. reflation trade may be weary due
to its only bonds, not selling bonds because of the unpredictability of trump in trade and because of the fed's inability to meaningfully move the dial on inflation expectation. i think that is the core adjunct of the bond market. would you agree with bank of america? >> i think markets are not very concerned about inflation even though actually the headline and , theall are about 2.3% now level previously, people were fearful of high inflation. inerally market participants of thes, it is not top risks for us. there is actually reason to be more cautious on high inflation and be protected from that because generally the risk is not that priced in. in terms of the mandates of full employment and stable inflation, there was a question from ayanna
pressley who asked whether the fed could ensure economic conditions in which anybody who wanted to work and can work will have a job available to them. it has prompted questions on the bloomberg about what for employment means. we don't want a philosophical debate, but does that also feed into the view that if the fed changes its focus at all, higher inflation is even further away? economy isthe u.s. at full employment already. jobou look at the number of openings, it is consistently higher than the number of unemployed since 2018, for example. the unemployment rate is near a 50 year low. there is actually still not a lot of inflation coming through. wage growth used to peek at 4%. now we have 3%. we are very far away from the fractional which actually would threaten the inflation outlook.
inflation isally not top of the agenda of the fed. manus: stay with us. more work to do. getting you up to speed with your business flash headlines this wednesday morning. good news for softbank. sprintl for the sale of to t-mobile. it has been long delayed and it has been fiercely opposed. $40 billionl remove of debt from softbank. disappointed investors who were looking for faster profit just days after uber reported strong numbers and moved up its target for profitability. new is not providing guidance. last year it said it would be profitable by the first quarter of 2021.
boeing fails to sell any planes in january. the extent of the slump that has strained the company's finances since two fatal crashes becomes ever more manifest. second withboeing's no orders since the grounding of its best-selling max jet. deliveries also plunged. boeing shipped only 13 planes in january down from 46 a year earlier. there is your business flash this morning. up, city officials defend monetary policy even as they acknowledges negative side effects. that is coming up next. ♪
defending their monetary stimulus policy even as they acknowledge the negative side effects need to be washed more closely. juliette saly, special appearance from singapore. >> really interesting to see three of those top three ecb policymakers including christine lagarde defending that even though we have low inflation when you look at the white line euros area inflation holding around 1.4%. core inflation at 1.1%. christine lagarde is reviewing a number of ecb policies including whether or not they should change that inflation target. all three of the key policymakers actually defended, sayingng philip lane negative interest rates are working and needed to revive inflation. this will also look at the non-core areas, including climate change, christine
lagarde saying that to the european parliament as we continue to see stubbornly low inflation in the your area, including when you look at the swap forwards. nejra: thank you. janet, if we were already questioning the effectiveness of monetary policy in europe for coronavirus, that debate gets more heated now with unknown risks. >> absolutely. the outbreak of coronavirus has had an impact on europe that is not that big. the main impact is supply chain disruption and that will be more related to germany. 40% of germany's gdp is export. 25% is manufacturing. germany will be singled out as the more impacted country. in terms of tourism, some people ultimately they are just 1% of all tourists in
europe in 2018, so the impact is not that big. i think the concern is it will delay the manufacturing recovery in the eurozone. before the outbreak, what we observed in our in-house economic indicator is that it is pointing to recovery. it is quite a strong signal. it is recovering and this is in line with the indicators the market tracks, that bloomberg has, for example. it is the early stage, so the concern is whether it will delay it. i think probably it will because of the supply chain disruption. but i think as long as this outbreak does not go on for another month or so, the situation should get better in europe. with philipu agree lane, the chief economist of the ecb, who says we are clearly not reaching a reversal rate in ongoings it is evident
measures to lower lending rates continue to drive credit growth? >> i think we probably hit a reversal rate in the year at some point. euro at some- point. already negative side effects, most notably in banks. i think there is still credit growth in europe. if you look at the latest ecb survey, there is actually starting to have headwinds in terms of the banks lending standard and the demand for credit. point, it is not really the price of the loans. it is the demand and whether there is growth in the economy. there is a limit to whether low interest rates can stimulate. negative rates will not do
anymore. that mean fores your investment strategy in europe? potentially giving some kind of tailwind? >> there could be tailwind for equity. the most important reason why will be the recovery in the data. that will be quite positive for risk estimates in the eurozone. generally speaking, europe is not our preferred region in global asset allocation. our preferred region is the u.s. and emerging markets. manus: thank you very much. at 10909 -- es euro trades at 10909. bank of america says this time is going to be different. that is your morning call. coming up very shortly right here on daybreak europe. ♪
nejra: good morning from bloomberg's european headquarters in the city of london. i am nejra cehic with the manus cranny live from dubai. this is "bloomberg daybreak: europe. these are today's top stories" . manus: we shall overcome. china willi vows meet its economic goals despite the coronavirus threat. chairman jerome powell warns the virus poses a threat to the u.s. and world economy. victory for bernie sanders. s the new hampshire primary. pete buttigieg in second place. softbank returns to profit in the third quarter despite a loss on the vision fund.
this after the stock surges, as the t-mobile-sprint merger is approved. europe is our focus. turns to bp and the vision of its new ceo. we speak to him. that is an exclusive conversation on bloomberg. ♪ nejra: ubs talked of equity exceptionalism around coronavirus at the start of the week. today, we see risk on across asset. asian equities higher. another record for u.s. stocks yesterday. the 10 year yields back above 1.60. oil is higher and gold retreats. we get all the market action from around the world. manus: we do indeed. it is about the commitment from xi jinping to a magical number
that is 6%. how does it play out for markets versus the coronavirus? the team is standing by. juliette saly in singapore. good morning to you. how is it looking in terms of the play out there? be looking atll some of the currency moves, particularly, this big spike in the kiwi leading g10 currency anys after the rbs quashed thoughts that the central bank would move to cut rates. the rbn said unless the coronavirus had a bigger than expected on economic growth, rates will remain at a record low. in korea, you are seeing the yuan climb. traders reassessing the fallout from the coronavirus. elsewhere, we had south korea's jobless level rising to its highest level since july, climb to 4% in january.
also rising against the dollar. nejra: thank you so much. we are seeing some broad gains in india. you are looking at consumer good stocks specifically. what are you seeing? >> good morning to both of you. index has had the biggest gain that it has had since september of 2018, predominantly because you know up and aboutver is in the session today. they are about 4.5%. people believe with the distribution tax changes that have been announced, some of these multinational companies which have got their subsidies in india will stand to receive higher dividends. as a result of that, there is an uptick that we see of a different nature. back to you. nejra: thank you so much.
let's get to the first word news. the coronavirus has claimed over 1100 lives. now, more than 45,000 people have been infected. latest data from china signals the outbreak may be easing. the number of new cases in a province was the lowest so far this month and the disease has been named -- bernie sanders has won the new hampshire primary. ap called the rice as he fended off a challenge from pete buttigieg. amy klobuchar came in a close third. the tight finish allows all three to claim some measure of success. narendra modi's ruling party has conceded defeat. that is after his religious-based citizenship laws sparked protests across the country. toran an aggressive campaign win the capital but it has not formed a government there for over two decades.
global news 24 hours a day, on-air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. manus? manus: thank you very much. prepare for higher u.s. inflation. they keep telling us that. it typically follows the same playbook but things could be different this time around, according to a bank of america analyst. activity revolves around buying inflation protected treasuries. he wrote the client yesterday. we touched on it. let's get straight to the concept, which is that policy rates are steady for the foreseeable future with unpredictable trade policies and immovable inflation expectations. the fed has to adopt intense levels of dovishness, so say the bank of america analyst. we touched on this a little bit earlier. you said that inflation is not your number one concern, but
this comes down to what is it could bring to bear. you could get wages unexpectedly popping to the upside, and this is perhaps what one of those swans for -- grey 2020. >> i don't think it is a risk at the moment. ,he wage growth is at about 3% and we are at like a 15 year low unemployment rate in the u.s.. job growth is consistently very robust, over 200,000, even in such a late stage of the cycle. it is a phenomenal job market in the u.s.. we have wage growth of 3%, which is actually good for consumption, but is not the kind of rate, like 4% year on year, that we would be worried about. that would be historically the threshold, at 4%, when the fed
starts to worry about the transmission to the headline inflation. i don't think it is a big risk for wage growth to move from 3% to 4% this year. nejra: have we got into a point where whatever the outlook turns out to be, there is definitely an argument to be made to be owning bonds, particularly at the long end? >> i understand that. we are in a very uncertain world with elevated geopolitical risk. we think that will be quite persistent. i think innovation -- inflation could be structurally low, interest rate will be structurally low, growth as well. all of these factors suggest that holding long bonds could be a good thing to do, despite the very high valuations. i would choose between equities. at least you get better yields from their. nejra: makes sense. bern. up, feeling the
♪ are closely monitoring the emergence of the coronavirus, which could lead to disruptions in china that spill over to the rest of the global economy. this is, from an economic perspective, already bigger than sars.-- the people's bank of china has done a number of things to support economic activity. i think you can expect the chinese government to do lots of things to support economic about. >> generally, pandemics can have quite a significant impact. much of it is recovered. >> we know that there will very likely be some effects. i think it is just too early to say. manus: that was the federal
reserve chairman, jerome powell, and the bank of england governor, mark carney, commenting on the impact of coronavirus and how it may play out from an economic perspective. bernie sanders has been declared the winner of the democratic new hampshire primary. he was fending off strong challenges from pete buttigieg, amy klobuchar, and elizabeth warren conceded after coming in at number four. pressure is building for former vice president joe biden. it makes the south carolina primary this month even more critical. nejra: bernie sanders has been declared the winner of the democratic new hampshire primary. the vermont senator fended off strong challenges from pete buttigieg and amy klobuchar. joining us from new york is bloomberg's kailey leinz. get us up to speed. >> this was a victory for bernie sanders. he scored nearly 26% of the vote. this is a really tight race.
former south bend, indiana mayor pete buttigieg got 24.4% of the vote. it was a very small margin of victory for sanders. total delegates is now above sanders because of it is victory in iowa. the big surprise was the strong showing from amy klobuchar. she had a strong showing in the democratic debate last weekend was able to garner 20% of the vote. the big disappointments were for elizabeth warren of massachusetts, and former vice president joe biden, who came in fifth place after a poor showing in iowa. neither candidate was even able to score double digit percentages of the vote. that was a bit of a disappointment for both campaigns. manus: so in terms of going into this next round, do you think going tocontenders are
be looking at what people said at the exit polls? >> they likely will. one thing that united all of the candidates today in the remarks was that the primary goal is to defeat president trump. they were all in agreement on that. in terms of exit polling from the voters in new hampshire, health care was very important, as well as climate change, according to cnn. how far that will carry into the races we have coming up next, next is the nevada caucus, followed by south carolina. that is a much more diverse state. about 60% of the democratic voters in south carolina are black. that is an area of demographic strength for the likes of joe biden, less so for pete buttigieg. diversity and the ability to appeal to a more diverse set of voters will be key as being move forward -- as we move forward to those races. nejra: thank you so much. coming up, outgoing bank of mark carney sat down with francine